Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Goodwill by Segment

The table below presents the changes in goodwill allocated to the Company’s reporting units in each reportable segment.

	Electronic Systems		Aerospace Systems		Communication Systems		NSS		Consolidated Total
	(in millions)
Balance at December 31, 2012	$	4,046	$	1,770	$	992	$	968	$	7,776
Business acquisition(1)		44		—		—		—		44
Business disposition		(2)		—		—		—		(2)
Foreign currency translation  adjustments(2)		(3)		(19)		—		—		(22)
Balance at December 31, 2013	$	4,085	$	1,751	$	992	$	968	$	7,796
Business acquisitions(1)		(3)		—		—		39		36
Business disposition		(1)		—		—		—		(1)
Foreign currency translation  adjustments(2)		(77)		(21)		—		(1)		(99)
Assets held for sale(3)		(231)		—		—		—		(231)
Balance at December 31, 2014	$	3,773	$	1,730	$	992	$	1,006	$	7,501

⁽¹⁾  For the year ended December 31, 2014, the decrease in goodwill for the Electronic Systems segment was due to the final purchase price allocation for the Mustang business acquisition. The increase in goodwill for the NSS segment was due to the L-3 Data Tactics business acquisition. For the year ended December 31, 2013, the increase in goodwill for the Electronic Systems segment was due to the Mustang business acquisition.

⁽²⁾  During 2014, the decrease in goodwill presented in the Electronic Systems segment was primarily due to the strengthening of the U.S. dollar against the Euro, the Canadian dollar and the British pound. During 2014 and 2013, the decreases in goodwill presented in the Aerospace Systems segment were due to the strengthening of the U.S. dollar against the Canadian dollar. During 2013, the decrease in goodwill presented in the Electronic Systems segment was primarily due to the strengthening of the U.S. dollar against the Canadian dollar and Australian dollar, partially offset by the weakening of the U.S. dollar against the Euro and the British pound.

⁽³⁾  On December 16, 2014, the Company entered into a definitive agreement with Wärtsilä Corporation to sell its Marine Systems International business.

Identifiable Intangible Assets

Information on the Company’s identifiable intangible assets that are subject to amortization is presented in the table below.

	December 31, 2014							December 31, 2013
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in millions)
Customer contractual   relationships(1)	20	$	440	$	262	$	178	$	466	$	253	$	213
Technology(1)	11		165		111		54		168		108		60
Other	18		27		16		11		27		15		12
Total	18	$	632	$	389	$	243	$	661	$	376	$	285

⁽¹⁾  Amounts reclassified to assets held for sale at December 31, 2014 relating to L-3 MSI include gross carrying amounts of $28 million and $7 million for customer contractual relationships and technology intangible assets, respectively, and accumulated amortization of $20 million and $6 million for customer contractual relationships and technology intangible assets, respectively.

Amortization Expense

Amortization expense recorded by the Company for its identifiable intangible assets is presented in the table below.

	Year Ended December 31,
	2014		2013		2012
	(in millions)
Amortization expense	$	43	$	39	$	47

Estimated Amortization Expense

Based on gross carrying amounts at December 31, 2014, excluding assets held for sale relating to L-3 MSI, the Company’s estimate of amortization expense for identifiable intangible assets for the years ending December 31, 2015 through 2019 is presented in the table below.

	Year Ending December 31,
	2015		2016		2017		2018		2019
	(in millions)
Estimated amortization expense	$	37	$	33	$	29	$	25	$	22